RAPAPORT... Global rough-diamond output grew 2% to $14.47 billion last
year, reflecting higher production in Botswana, according to data the Kimberley
Process (KP) released last week.

The average price increased 4% to $97 per carat, outweighing
a 2% decline in production volume to 148.4 million carats, the figures showed.

Russia remained the world’s principal source of rough, despite
its recoveries falling 3% to $3.98 billion. Botswana was largely responsible
for the overall increase in value, with the nation’s output rising 6% to $3.53
billion for the year. Production in Canada increased 2% to $2.1 billion.

Volume down

The decline in global production volume mirrors a slump in
supply from the Argyle mine in Australia. Production in the country fell 18% to
14.1 million carats, according to the KP, matching data for Argyle provided
earlier this year by its owner, Rio Tinto.

Botswana, which offers higher-value goods than most other
large producing countries, saw 2018 output volume rise 6% to 24.4 million
carats, reflecting a similar increase in production at Debswana, De Beers’
joint venture with the Botswana government.

Meanwhile, Botswana overtook Canada as the second-largest
producer by volume, after dropping into third place in 2017.